TA: Ethereum Bulls Keeps Pushing, Why $1,720 Is The Key For Fresh Rally

TA: Ethereum Bulls Keeps Pushing, Why $1,720 Is The Key For Fresh Rally

Ethereum started a steady recovery above the $1,600 level against the US Dollar. ETH price is now facing a major resistance near $1,700 and $1,700.

  • Ethereum formed a decent support base above $1,550 and recovered above $1,650.
  • The price is still trading below the $1,700 resistance and the 100 hourly simple moving average.
  • There was a break above a key declining channel with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase if there is a clear break above $1,700 and $1,720.

Ethereum Price is Facing Resistance

Ethereum remained strong above the $1,500 level and it recovered nicely above $1,600. ETH even settled above the $1,600 level, similar to bitcoin above $50,000.

There was a spike above the $1,700 level, but the bulls fail to gain strength. A high was formed near $1,720 and the price corrected lower. There was a break below the 23.6% Fib retracement level of the upward move from the $1,430 swing low to $1,720 high.

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However, ether price remained stable above the $1,575 level. The 50% Fib retracement level of the upward move from the $1,430 swing low to $1,720 high also provided support.

TA: Ethereum Bulls Keeps Pushing, Why $1,720 Is The Key For Fresh Rally

The price is rising again above the $1,600 level. There was a break above a key declining channel with resistance near $1,620 on the hourly chart of ETH/USD. The first major resistance is near the $1,700 level. The main resistance is now forming near the $1,720 level and the 100 hourly simple moving average.

If there is a clear break above $1,700 and $1,720, ether price could start a steady increase. The next major resistance on the upside sits near the $1,800 level.

Fresh Dip in ETH?

If Ethereum fails to continue higher above the $1,700 and $1,720 resistance levels, there could be a fresh decline. An initial support on the downside is near the $1,575 level.

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There is also a connecting bullish trend line forming with support near $1,575 on the same chart. If there is a downside break below the trend line support, there could be a sharp decline towards $1,500 or even $1,450.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is struggling to gain momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now close to the 50 level.

Major Support Level – $1,575

Major Resistance Level – $1,720

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